- The Chinese government threatened to impose economic and trade sanctions on Kenya over alleged hostile involvement
- China has currently not committed to the construction of second phase of Standard Gauge Railway from Naivasha to Kisumu
- President Uhuru Kenyatta is struggling to strike balance between the foreign lender and local businessmen
- Department of Fisheries cancelled applications for imports of Chinese fish and banned the same commencing January 2019
- China referred to move by Kenya as waging trade war threatening to retaliate with cutting funding
The chances of funding next phase of Standard Gauge Railway line from Nairobi Naivasha have drastically reduced after China the main financier of project threatened to impose trade sanctions on Kenya.
China is angry with Kenya's move to cancel all applications for importation of fish from their market terming the move as a trade war which they would retaliate to by cutting economic ties.
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China threatens to stop SGR funding after Kenya bans Chinese fish imports
Kenyan leaders and traders had raised concern over the influx of Chinese fish in the local market. They said the imports were killing local sector. Photo: UGC
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Speaking to a section of Kenyan politicians on Tuesday, October 30, China's Acting Ambassador Li Xuhang confirmed Kenya's department of fisheries had served their consulate with letter imposing ban of importation of fish from their market.
"We have received letter from the department of fisheries canceling all fish importation applications from China. The move is shocking and we could respond to it the was we did with the US after it imposed tariffs on goods from our markets," Xuhang said.
The department of fisheries was prompted to make the notice by President Uhuru Kenyatta's proposal to government officials to devise creative means to ensure Chinese fish which had flooded local market does not get into the country.